Why would a business go the ICO route?

A startup with plans for a token based network or market place will require capital to build the technology and the business. Tokenization of course suggests that the way to go is an ICO however the old fashioned Venture Capital route or indeed an IPO is of course always an option.

There starts the discussion, what is the reasoning/advantages of going the ICO way?

The following considerations would be arguments for an ICO

• An ICO 'might' go under the radar of authorities and be classed as an unregulated sale of digital assets avoiding securities regulations.
• It could be the only way to fund open source projects, as venture firms would typically like to control the intellectual property
• It does not promise investment returns or ownership, thus leaving this to the founders.
• Token sale can be used to incentivize development, as the development team can receive an allotment again without ceding ownership of the venture
• As Tokens are typically required to participate in the network, participants in the ICO are given motivation to drive success of Network going forward.

Looking forward to your thoughts...